Former US student pleads guilty to Ponzi scheme
A man who formerly studied at a leading US university has pleaded guilty to managing a Ponzi scheme out of his student frat house.
Syed Arham Arbab, who is 22-years-old and lives in Augusta in the state of Georgia, managed to pull off the scheme which defrauded almost 120 people while he was a student at the University of Georgia.
He managed to accrue around $1m as part of the fraud, which was operated from the fraternity house – which is an American, all-male form of student living – in the Athens area of Georgia.
He was a student at the University of Georgia at the time.
According to press reports, he later spent the cash on a number of personal spending items including entertainment and clothing.
The scam is believed to have been perpetrated between May of 2018 and May of 2019.
As part of the fraud, Arbab persuaded traders that he had a number of prestigious people investing in his organisation, including a former member of the US National Football League.
Alleged text messages from Arbab revealed that he supposedly said to potential investors that the company he ran was “different because we target young investors/college kids”.
According to Charlie Peeler, who is the US Attorney for the Middle District of Georgia, the victims of the scam were “unwitting investors”.
“The defendant engaged in a pattern of deceit to gain the trust of unwitting investors who gave him their hard-earned money for what they believed was a sound investment”, he said.
Arbab will be sentenced in January.
More people accused of binary options scam
More people from Israel have been accused by the US authorities of playing a part in binary options scams in the country and around the world.
The Securities and Exchange Commission (SEC) has in recent months targeted the industry in Israel.
Binary options have been widely discredited in the wider forex and crypto industries as fraudulent.
Now, two men – 34-year-old Anton Senderov and 37-year-old Lior Babazara – have been accused by the Securities and Exchange Commission of running two fraudulent binary options sites.
One was called IvoryOption.com, while the other was called lbinary.com.
Overall, the pair are accused of scamming almost 3,000 US-based traders.
They are believed to have accrued over $5m as part of the scamming.
The timeframe for the allegations begins in January 2014 and ends in August 2017.
The pair are accused of committing their crimes via a firm called LianTech.
“LianTech used LBinary and Ivory Option to fraudulently make unregistered offers and sales of binary options that referenced well-known securities to investors in the United States”, the SEC said in its accusation.
“The Defendants, operating from Israel, controlled these activities and thereby directly or indirectly offered and sold binary options to United States investors through these entities”, it said in a further accusation.
- Scammer Alert – Trader Feedback on The Scams Currently Doing the Rounds
- State of the Nation – Up to Date Reports on Which of the Brokers Can be Trusted – Tickmill
- Patience is Rewarded – Is Now the Time to Buy The Dips?
- Was El Salvador’s Bitcoin Launch a Target of Market Manipulation
- The Share Price Plunge at CMC Markets is Bad News for Clients and Investors
- Attack of The Clones – An Update on Scam Sites and How to Avoid Them
Scammer Alert – Trader Feedback on The Scams Currently Doing the Rounds
State of the Nation – Up to Date Reports on Which of the Brokers Can be Trusted – Tickmill
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2015||Global Forex & CFD Broker||
LOWEST FEES Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#5||CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox